08-20-2008, 12:32 PM
Property developers drag HK shares to new 1-year low
HONG KONG: Hong Kong shares fell 2.1 percent on Tuesday to close at a new one-year, weighed down by losses in property stocks ahead of earnings reports, but power stocks rallied on hopes that China will allow more tariff increases after the Olympics.
Europe’s largest bank HSBC Holdings slipped 1.8 percent, leading losses on the blue chip index, as fears of more credit-related losses resurfaced. The Hang Seng Index closed down 446.30 points at the day’s low of 20,484.37. Mainboard turnover was HK$48.5 billion ($6.2 billion) as compared with HK$45.2 billion on Monday. Property stocks extended Monday’s losses ahead of Cheung Kong Holdings’ first-half earnings on Thursday.
A lower contribution from sister company Hutchison Whampoa and limited property development profits should send Cheung Kong’s net profit down about 67 percent to HK$6.1 billion, according to the forecasts of four analysts polled by Reuters. Billionaire Li Ka-Shing’s property flagship Cheung Kong dropped 4.3 percent, while Hong Kong’s largest property developer, Sun Hung Kai Properties, gave up 4.7 percent. Sino Land fell 5.3 percent.
Huaneng Power rose 2.7 percent after Goldman Sachs removed the stock from its conviction sell list on hopes of further power tariff reforms in China and retreating international coal prices in recent weeks. Following power tariff hikes in China in July, Goldman predicts an average 5.3 percent tariff hike in September. After the market close, China announced it would raise the price paid to thermal plant operators who sell into the national power grid by 0.02 yuan per kilowatt hour, effective Aug 20.
Chinese power firms have cut output — aggravating the country’s worst power crisis in 4 years — in the face of costly and scarce coal and government caps on electricity prices, which have squeezed profit margins. Other power stocks also bucked the broad market trend to rise on Tuesday. Datang Power gained 3 percent while China Resources Power moved up 1.8 percent. The China Enterprises Index of top locally-listed mainland was down 2.3 percent at 10,714.44, falling to its lowest level since May 2007. reuters
http://www.dailytimes.com.pk/default.asp...008_pg5_33
HONG KONG: Hong Kong shares fell 2.1 percent on Tuesday to close at a new one-year, weighed down by losses in property stocks ahead of earnings reports, but power stocks rallied on hopes that China will allow more tariff increases after the Olympics.
Europe’s largest bank HSBC Holdings slipped 1.8 percent, leading losses on the blue chip index, as fears of more credit-related losses resurfaced. The Hang Seng Index closed down 446.30 points at the day’s low of 20,484.37. Mainboard turnover was HK$48.5 billion ($6.2 billion) as compared with HK$45.2 billion on Monday. Property stocks extended Monday’s losses ahead of Cheung Kong Holdings’ first-half earnings on Thursday.
A lower contribution from sister company Hutchison Whampoa and limited property development profits should send Cheung Kong’s net profit down about 67 percent to HK$6.1 billion, according to the forecasts of four analysts polled by Reuters. Billionaire Li Ka-Shing’s property flagship Cheung Kong dropped 4.3 percent, while Hong Kong’s largest property developer, Sun Hung Kai Properties, gave up 4.7 percent. Sino Land fell 5.3 percent.
Huaneng Power rose 2.7 percent after Goldman Sachs removed the stock from its conviction sell list on hopes of further power tariff reforms in China and retreating international coal prices in recent weeks. Following power tariff hikes in China in July, Goldman predicts an average 5.3 percent tariff hike in September. After the market close, China announced it would raise the price paid to thermal plant operators who sell into the national power grid by 0.02 yuan per kilowatt hour, effective Aug 20.
Chinese power firms have cut output — aggravating the country’s worst power crisis in 4 years — in the face of costly and scarce coal and government caps on electricity prices, which have squeezed profit margins. Other power stocks also bucked the broad market trend to rise on Tuesday. Datang Power gained 3 percent while China Resources Power moved up 1.8 percent. The China Enterprises Index of top locally-listed mainland was down 2.3 percent at 10,714.44, falling to its lowest level since May 2007. reuters
http://www.dailytimes.com.pk/default.asp...008_pg5_33